Ripple executives have made significant statements this week, reinforcing XRP's legal standing in the U.S. and detailing new utility for stablecoins on the Ripple platform. Reece Merrick, Ripple's Managing Director for the Middle East & Africa, confirmed on January 7, 2026, that XRP holds a definitive legal status as a non-security digital asset in the United States. This status, he stated, was firmly established through multiple landmark court rulings involving Ripple and the U.S. Securities and Exchange Commission (SEC).
Merrick directly addressed investor concerns about XRP's dependence on upcoming legislation like the Clarity Act, stating, "XRP has a definitive legal standing and is not awaiting any new law to confirm that." He emphasized that while Ripple supports broader legislative efforts to bring consistency to the U.S. cryptocurrency regulatory landscape, XRP's individual status is already clear. "The Clarity Act may benefit the space," Merrick said, "but XRP's status has already been clarified in court." He noted that the lack of comprehensive U.S. crypto regulation is an industry-wide issue, not one specific to XRP.
In a separate development, Jack McDonald, Ripple's Senior Vice President for Stablecoins, unveiled a 'yield engine' for stablecoins on the Ripple platform. In a company podcast, McDonald outlined two primary ways for users to generate yield from their stablecoin holdings. The first is investing in interest-bearing stablecoin reserves, though he noted this is only available in some jurisdictions. The second, more widely accessible method, is to use stablecoins as collateral in DeFi protocols like Aave or to provide liquidity to automated market makers (AMMs). McDonald contrasted these with traditional savings accounts, which offer significantly lower yields.
Ripple's official Twitter account summarized the initiative, stating, "With stablecoins, the transition from digital dollars to yield engines is here, delivering greater efficiency and utility on-chain." This announcement highlights Ripple's continued push to expand utility and financial products within its ecosystem, even as it maintains its advocacy for clearer regulatory frameworks.
